Correlation Between SpartanNash and High Tide
Can any of the company-specific risk be diversified away by investing in both SpartanNash and High Tide at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SpartanNash and High Tide into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SpartanNash Co and High Tide, you can compare the effects of market volatilities on SpartanNash and High Tide and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SpartanNash with a short position of High Tide. Check out your portfolio center. Please also check ongoing floating volatility patterns of SpartanNash and High Tide.
Diversification Opportunities for SpartanNash and High Tide
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SpartanNash and High is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding SpartanNash Co and High Tide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Tide and SpartanNash is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SpartanNash Co are associated (or correlated) with High Tide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Tide has no effect on the direction of SpartanNash i.e., SpartanNash and High Tide go up and down completely randomly.
Pair Corralation between SpartanNash and High Tide
Given the investment horizon of 90 days SpartanNash Co is expected to under-perform the High Tide. But the stock apears to be less risky and, when comparing its historical volatility, SpartanNash Co is 1.15 times less risky than High Tide. The stock trades about -0.14 of its potential returns per unit of risk. The High Tide is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 297.00 in High Tide on August 27, 2024 and sell it today you would lose (6.00) from holding High Tide or give up 2.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SpartanNash Co vs. High Tide
Performance |
| Timeline |
| SpartanNash |
| High Tide |
SpartanNash and High Tide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SpartanNash and High Tide
The main advantage of trading using opposite SpartanNash and High Tide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SpartanNash position performs unexpectedly, High Tide can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in High Tide will offset losses from the drop in High Tide's long position.| SpartanNash vs. Performance Food Group | SpartanNash vs. US Foods Holding | SpartanNash vs. Calavo Growers | SpartanNash vs. The Andersons |
| High Tide vs. Leafly Holdings | High Tide vs. SunLink Health Systems | High Tide vs. Kiaro Holdings Corp | High Tide vs. Leafly Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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